Q&As

What are the implications if an original party (the buyer) to an option agreement conditional upon planning obtains the planning permission, and in the time between obtaining the planning and exercising the option, assigns the benefit of the option to another buyer for an option fee that is equivalent to the uplift on the land due to it having the benefit of the planning?

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Produced in partnership with Helen Galley of XXIV Old Buildings
Published on: 19 March 2019
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In this query, a person, usually a developer, wishes to buy land for development but is concerned that planning permission may not be forthcoming. The developer does not want to be bound to acquire land which may well prove to be worthless for development purposes and so the developer might:

  1. •

    enter into a conventional contract at a price to reflect its current value without planning permission subject to an uplift or overage payment in the event that planning permission is granted within a fixed period, or

  2. •

    enter into a contract conditional upon planning permission being obtained within a fixed or reasonable time, or, as in this case

  3. •

    enter into an

Helen Galley
Helen Galley

XXIV Old Buildings

Helen has built up a reputation as a well-respected commercial Chancery practitioner with an emphasis on property and trusts related issues. She has built up extensive and wide ranging expertise in both non contentious and contentious property matters ranging from small scale cases to multi-million pound developments. Helen has also acted in a wide range of commercial and business disputes in areas as diverse as travel, hire purchase, the media, entertainment, IPR, IT and e-commerce. Contentious and non-contentious trusts matters, both on and offshore, are a regular feature of her caseload. Helen is a member of STEP, ACTAPS, the Property Bar Association, the Chancery Bar Association and IAL as well as an accredited mediator. Helen is recommended as “a first-rate advocate” in Legal 500 2015 for private client (trusts and probate), partnership and professional negligence. She is said to be “consistently able to provide excellent advice in a charming and friendly style” and is “responsive, hugely supportive and extremely user-friendly”.

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United Kingdom
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